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2019 Supreme(SC) 395

SUPREME COURT OF INDIA
ASHOK BHUSHAN, K.M. JOSEPH, JJ.
ATUL CHANDRA DAS (D) THROUGH LRS - Appellant
Vs.
RABINDRA NATH BHATTACHARYA (D) THR. LRS. AND OTHERS - Respondent
Civil Appeal No(s). 8793-8794 of 2013
Decided on : 04-04-2019

Advocates:
Advocate Appeared:
For the Appellant :Ms. Neha Verma, Advocate, Ms. Daisy Hannah, Advocate, Ms. Sreoshi Chatterjee, Advocate and Mr. Shekhar Kumar, Advocate
For the Respondent:Mr. Rameshwar Prasad Goyal, Advocate

IMPORTANT POINT
Despite inconsistency, Section 37(A) of Bengal Money-Lenders Act, 1940 will prevail in State.

Headnote:Transfer of Property Act, 1882 – Section 58(c) – Bengal Money-Lenders Act, 1940 – Section 37A – Redemption of mortgage – Under Section 58(c), proviso makes it indispensable to constitute a transaction a mortgage that one of conditions mentioned in Section 58(c) be incorporated in document by which conditional sale is effected – State legislature has intended to override effect of proviso to Section 58(c) of Transfer of Property Act by enacting Section 37(a) in State Act – Proceeding on the basis that there is an inconsistency between Section 58(c) of Transfer of Property Act and Section 37(A) of State Act, in view of assent given by President, matter falls under Article 254(2) – Despite inconsistency, Section 37(A) of State Act will prevail in State – Appeals dismissed. (Paras 9, 10, 18 and 20)

       Facts of Case:

       Deceased appellant claimed to be landlord of building and alleging that defendants have no right to occupy premises, he sought recovery of possession by evicting the defendants. These appeals are directed against common judgment of Calcutta High court dismissing First Appeals filed by Deceased appellant against dismissal of E.S. filed by him for ejectment of respondents from plaint schedule property and decreeing of Suit filed by respondents.

       Findings of Court:

       Argument that being part of State Act which is Money Lending Act and Money lending is in State list and therefore, it is a case of legislative, incompetence, does not appeal to us. We have found that provisions of 37(A) is traceable to the Entry ‘Transfer of Property’ in the Concurrent List and that Article 254(2) saves the provision.

       Result : Appeals dismissed.

       

JUDGMENT :

K.M. Joseph, J.

The appellants are the legal representatives of one Atul Chandra Das. These appeals are directed against the common judgment of the Calcutta High court dismissing the First Appeal No. 7 of 1989 and First Appeal No. 8 of 1989. The appeals were filed by Atul Chandra Das against the dismissal of E.S. No. 782 of 1979 filed by him for ejectment of the respondents from the plaint schedule property and decreeing of Suit no. 1271 of 1980 filed by the respondents which would be referred to as the title suit. Thus, the appeals before us are lodged against the concurrent finding of the courts below and maintained by special leave granted by this Court.

2. The case set up by Atul Chandra Das is as follows:

By a registered deed of conveyance dated 28.11.1959 (the parties shall be referred to as in the position in the trial Court), the defendants sold for consideration the plaint schedule property to one Bholanath Auddy (hereinafter referred to as “Bholanath”). Simultaneously, Bholanath created tenancy in favour of the defendants at the monthly rent of Rs.50/-. It was agreed that the share of corporation tax shall be paid by the defendants. It was also agreed between Bholanath and defendants that the defendants were to vacate and deliver possession on the expiry of two years from 28.11.1959. Thereafter, an agreement for sale was entered into on 15.8.1960 between Bholanath and Atul Chandra Das. He agreed to sell plaint schedule property for Rs.9000/-. Since Bholanath failed to perform the obligation, O.S. No.171 of 1962 was filed by Atul Chandra Das for specific performance. On 30.11.1977 a decree was passed in favour of Atul Chandra Das. In terms of decree he deposited the balance consideration and finally a sale deed was executed in his favour. He claimed to be the landlord of the building and alleging that defendants have no right to occupy the premises, he sought recovery of possession by evicting the defendants. The defendants filed written statement. That apart they also filed the other suit namely Suit No.1271 of 1980. Therein the following averments were made inter alia:

Smt. Annapurna Devi (since deceased) was the owner for life of the property and on her death, her three sons namely Late Ashutosh Bhattacharya, Late Dulal Krishna Bhattacharya and Rabindra Nath Bhattacharya (hereinafter referred to as ‘Bhattacharyas and who are the defendants in the suit filed by Atul Chandra Das and plaintiffs in O.S. No. 1271/1980) were given absolute rights, in terms of the will executed by Bijoy Kr. Ghosal, the owner of the property. They set up the case that a sum of Rs.8000/- came to be borrowed from Bholanath on 28.9.1959. To secure Rs.8000/- Bhattacharyas mortgaged by conditional sale, on 28.11.1959 the plaint schedule property in favour of Bholanath. In order to give effect to mortgage an agreement for sale was entered into on 07.12.1959 with Aboya Devi (since deceased wife of Late Ashutosh Bhattacharya and deceased Late Karuna Bhattacharya, the wife of first plaintiff in a title suit and Late Smt. Rama Devi, daughter of Annapurna Devi) who were the nominees of the mortgagors for the agreement to sell of the house on payment of a sum of Rs. 10,000/- which was settled to be the mortgage money, no rate of interest having been stipulated. Two years was agreed to be the period of redemption of mortgage. The title deeds were to be kept with Bholanath by way of further security. The agreement which is referred to by Atul Chandra Das as an agreement for sale in his favour dated 15.8.1960 is described as a collusive and fraudulent agreement and it was entered into before the expiry of period of redemption. The plaint schedule property comprised of a three storied building standing upon an area of 1 cottah and 8 chittack as of land and the value at the relevant time would not have been less than Rs.30,000/-, the annual municipal value being Rs.1469/- declared at that point of time. Bholanath was a mere mortgagee in a mortgage by


































































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